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The company was awarded its first Japanese Quality Control Award at the start 1970s. 3 conti…… : conti…… Due to the 1973 oil crisis consumers in the lucrative U.S. market began turning to small cars with better fuel economy. However Japanese customers had a long-standing tradition of demanding small fuel-efficient cars that were manufactured to a high level of quality. Because of this, companies like Toyota, Honda, and Nissan established a strong and growing presence in North America in the 1970s. 4 Headquarter of Toyota : Headquarter of Toyota OUTSIDE VIEW INNER VIEW 5 TOYOTA TIMELINE : TOYOTA TIMELINE 1933 - Automobile department established within textile loom maker Toyoda Automatic Loom Works now Toyota Industries Corp.. founded by inventor Sakichi Toyoda. 1935 - First vehicle, the Model G1 truck, built. First Toyota dealership established. 1936 - Production starts of its first car, the Model AA 1957 - Crown becomes first passenger car made in Japan to be exported to the United States. 1962 - First overseas vehicle plant, in Brazil. 6 Slide 7: CONTI….. 1964 - First Asian vehicle plant outside Japan, in Thailand. 1972 - Cumulative production in Japan reaches 10 million vehicles. 1984 - Toyota's first U.S. car assembly plant, a joint venture with General Motors Corp, opens in California. 1989 - Toyota launches luxury Lexus brand in North America. 1997 - Prius, the first mass-produced hybrid car, launched. 7 Slide 8: 1998 - Toyota takes majority stake in minivehicle maker Daihatsu Motor Co. 1999 - 100 millionth Toyota vehicle produced in Japan 2001 - Toyota take majority stake in truck maker Hino Motors Ltd. 8 2000 SERIES : 2000 SERIES 2001 - Toyota take majority stake in truck maker Hino Motors Ltd. 2003 - Toyota makes 6.78 million vehicles and overtakes Ford Motor Co in annual sales to become world No.2 behind General Motors 2005 - Toyota takes minority stake in Fuji Heavy Industries, maker of Subaru cars, for cooperation in vehicle technology development and use of its U.S. factory 2006 - Toyota takes minority stake in truck maker Isuzu Motors Ltd to beef up diesel engine technology 9 Slide 10: 2006 - Toyota's group global sales of 8.808 million vehicles exceeds GM's by 128,000, making it the world's biggest automaker The Japanese automaker now has 40 vehicle assembly plants around the world and 12 research, development and design centers. It employs 310,000 people. 10 G1 TRUCK (1935) : G1 TRUCK (1935) 11 AC SEDANS (1943) : AC SEDANS (1943) 12 T 10 Series (1957) : T 10 Series (1957) 13 Toyota Carina (1994 ) : Toyota Carina (1994 ) 14 Toyota Allion (2001) : Toyota Allion (2001) 15 Toyota Alphard V (2002) : Toyota Alphard V (2002) 16 Toyota Belta (2005) : Toyota Belta (2005) 17 Toyota FJ Cruiser (2007) : Toyota FJ Cruiser (2007) 18 Toyota prius (2010) : Toyota prius (2010) 19 14 PRINCIPLES OF TOYOTA : 14 PRINCIPLES OF TOYOTA 20 Slide 21: 1. Base your management decisions on long term philosophies, even at the expense of short term goals. GUIDING PRINCIPLES OF TOYOTA MOTOR 21 Slide 22: The Right Process Will Produce Right Result. 22 Slide 23: 2. Create continuous process flow to bring problems to the surface. Takt Time- One Piece Flow:- Continuous flow and takt time are most easily applied in repetitive manufacturing and service operations. Benefits of One Piece Flow:- Builds in Quality. Creates Real Flexibility. Creates Higher Productivity. Improves Safety. Improves Morale. Reduces Cost Of Inventory. 23 Slide 24: 24 Slide 25: 3.Use “Pull” Systems to Avoid Overproduction. 4. Level out the workload. 5. Build in a method to stop and fix problems when they are discovered, this ensures quality the first time. 6. Standardized tasks provide the foundation for continuous improvement and employee empowerment 7. Use visual control so no problems are hidden 25 Slide 26: 8. Use only reliable, thoroughly tested technology that serves you people and processes. 9. Grow leaders who thoroughly understand the work, live the philosophy and can and do teach it to others 10. Develop exceptional people and teams who follow your company's philosophy. 11. Respect your extended network of partners and suppliers by challenging them and helping them improve 12. Go and see for yourself so that you completely understand the situation 26 Slide 27: 13. Make decisions slowly by consensus, thoroughly consider all options; implement decisions rapidly. 14. Become a learning organization through relentless self examination and continuous improvement. 27 1998 Production Comparison Chart : 1998 Production Comparison Chart 28 Production History : Production History 29 CASTING A GLOBAL SPELL : CASTING A GLOBAL SPELL Toyota Motor Corporation (Toyota), replaced Ford Motors (Ford), as the world's second largest automobile Ford had been in that spot for over seven decades. Toyota sold 6.78 million vehicles worldwide while Ford's worldwide sales amounted to 6.72 million vehicles 30 TOYOTA’S STRATEGY : TOYOTA’S STRATEGY Increase competitive strength through advanced technology Environmental technology fuel consumption, emission, recoverability Hybrid vehicles and next generation fuel cells Cost-reduction efforts discontinuation, integration of older models Increased emphasis on financial services and information communication system 31 REGIONAL STATEGY : REGIONAL STATEGY ASIAN MARKET: manufacturing & export base for pickups/multipurpose vehicles. This helps in Development of global manufacturing base and mutual distribution network. CHINESE MARKET: manufacturing & marketing to be strengthened in response to market growth. JAPANESE MARKET: introduction of Lexus & reorganization of sales channel. Preparations for future changes (in market structure & customer values). 32 TECHNOLOGICAL STRATEGY : TECHNOLOGICAL STRATEGY Development of a wide range of technologies and products with focus on market creation. Harmonizing economy with ecology. Prius: The World’s First Production Hybrid Vehicle Design. Innovative advances in fuel economy, surpassing conventional gasoline-fuel engine which ensures drastically cleaner emissions. Low environmental impacts (Emission). This in turn increased the sale of hybrid vehicles. 33 THE TOYOTA PRODUCTION SYSTEM : THE TOYOTA PRODUCTION SYSTEM Revolutionized manufacturing industry At its core is “lean” a relentless drive to improve efficiency and eliminate waste Beginnings of TPS were born out of necessity due to lack of resources in post-war Japan. 34 Slide 35: “5 Whys” Quality Asking “Why?” 5 times to locate source of problems Stopping the production line whenever there are quality problems to ensure they are not repeated. Low cost supplier Long term supplier relationships. Toyota Production SystemKey Concepts 35 Toyota Production SystemKey Main Concepts : Toyota Production SystemKey Main Concepts SMED Single Minute Exchange of Dies Promoted flexibility of production runs JIT Just In Time manufacturing Small batches which reduced inventory costs, tightened relationship with suppliers and improved quality control 36 DOMESTIC PROBLEMS & SOLUTIONS : DOMESTIC PROBLEMS & SOLUTIONS Also, Toyota's Japan sales contributed to a very small share of its total profits. US sales contributed to the majority share (80%) of the profits, followed by Europe. By the late 1990s; young buyers accounted for 30% of the customer base as compared to over 45% in the late 1980s. In 1998, models from rival companies such as Honda and BMW were more popular than the ones offered by Toyota. According to reports, Japanese youngsters felt that Toyota cars 'lacked attitude.' Toyota realized that by losing its young customers to other companies, it ran the risk of losing its future market as well. Analysts claimed that despite its efforts to cater to the young, the company had failed to give them zippy compact minivans and sports utility vehicles etc.. The company came up with attractive SUVs' like supra etc.. 37 THE SECOND PHASE OF GLOBALIZATION : THE SECOND PHASE OF GLOBALIZATION Cho decided to focus more on localization - he believed that by doing so, Toyota would be able to provide its customers with the products they needed, where they needed them. This was expected to help build mutually benefiting, long-term relationships with local suppliers and fulfill Toyota's commitments to local labor and communities. Cho defined globalization as 'global localization.' Therefore, besides focusing on increasing the number of manufacturing centers and expanding the sales networks worldwide, Toyota also focused on localizing design, development and purchasing in every region and country. 38 SETBACK OF TOYOTA : SETBACK OF TOYOTA In the year 2000, Toyota rolled out its multi purpose vehicle (MUV) ‘Qualis’ in India which was an instant success. Gradually It introduced Camry, Corolla and later in 2005, Innova. All these models created success saga for Toyota Kirloskar. Not withstanding of its initial success, Toyota could manage to have meager 5% market share in Indian passenger car market which remained far away from its mission statement to grab 10% market share in Indian passenger car market by 2010. Analysts predicted that unless Toyota would enter into compact car segment, it would unlikely to have that much market share. 39 THE GLOBALIZATION PAY-OFF : THE GLOBALIZATION PAY-OFF By mid-2003, Toyota was present in almost all the major segments of the automobile market that included small cars, luxury sedans, full-sized pickup trucks, SUVs, small trucks and crossover vehicles. According to reports, while global vehicle production increased by 3.3 times since the early 1960s, Toyota's production had increased by 38 times. As a result of its localization initiatives, Toyota had 45 manufacturing plants in 26 countries and regions by this time, and sold vehicles in 160 countries. 40 PRIUS THE MISSION SAVER : PRIUS THE MISSION SAVER A clear winner at last year's Oscars was the Toyota Prius, the energy efficient hybrid car. Stars including Susan Sarandon and Tim Robbins stepped from the vehicle onto the red carpet, making a statement about President Bush's environmental policies. Prius, the world's cleanest family car, has exceeded 300,000 sales worldwide since its launch in 1997, and UK sales doubled between 2004 and 2005 with the launch of a new model. The car uses hybrid technology, meaning that it runs on gas and electricity, making it cleaner and more efficient. 41 INNOVATIVE STRATEGY : INNOVATIVE STRATEGY From mild-mannered family car to leading proponent of alternative technology and design. Imagine commuting to the office on one of these contraptions. If it seems a little far-fetched, then don't be too quick to judge. This is the concept design for the new i-swing personal mobility vehicle, revealed at the 2006 Geneva Motor Show in February, and it was conceived by one of the world's most innovative car brands. 42 THE 2010 GLOBAL VISION : THE 2010 GLOBAL VISION In April 2002, Toyota announced another corporate strategy to boost its globalization efforts. This initiative, termed the '2010 Global Vision' was aimed at achieving a 15% market share (from the prevailing 10%) of the global automobile market by early 2010, exceeding the 14.2% market share held by the leader GM. The theme of the new vision was 'Innovation into the Future,' which focused on four key components: Recycling Based Society; Age of Information Technology; Development of Motorization on a Global and innovation. 43 CONCLUSION : CONCLUSION In a comprehensive survey made by the Reputation Institute, a New York-based private research and consulting form, Toyota was voted to be the world's most respected company. The survey included more than 1,000 companies' brand images, evaluating respondents' perceptions of trust, esteem, admiration, and good feeling to determine their scores. Toyota was the only vehicle manufacturer to score over 80, and also finished in first place in five out of seven categories overall — making it first among the top tier of all manufacturers. It was the strong consumer perception of the company's quality, value, safety, and reliability that helped Toyota rise above its competitors in the rankings. The fact that the automaker stood behind its products swayed the results in positive light, as it showed the company had confidence in the products they produced. 44 UPDATES : UPDATES 45 Slide 46: 46 VENSA AN CROSSOVER SUV? : VENSA AN CROSSOVER SUV? Toyota is describing the Venza as a car, but it is either a station wagon or a Crossover SUV in our eyes. As all manufacturers are doing these days, Toyota is avoiding the use of the “station wagon” descriptor because folks simply don’t buy station wagons anymore. They are also avoiding calling Venza a Crossover SUV because it would then compete with about 60 other relatively new Crossover SUVs. So, you certainly understand that Toyota is trying to get some white space in which they can position the Venza. Nothing wrong with that. 47 Slide 48: 48 PLUG IN ROLL OUT CAR : PLUG IN ROLL OUT CAR Toyota has revealed its latest plug-in electric concept car here at the Tokyo Motor Show. The FT-EV II is a follow up to the iQ-based FT-EV that we saw in Detroit earlier this year but appears to be a ground-up design that takes advantage of the electric drive architecture. The new concept uses a complete drive-by-wire system with joystick-like controls. 49 Slide 50: 50 You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.